XRP Might Be Gearing Up To Stage A Recovery, Data Reports

The native token of the Ripple network, XRP, has been exhibiting a significant performance recently. On-chain metrics suggest that the asset might be preparing for a potential recovery from the latest downturn.

This development has sparked speculation and curiosity among investors and traders as this might be considered a potential buy signal for Ripple (XRP).

Notably, Ripple Network is still facing a lawsuit filed by the US. Securities and Exchange Commission (SEC), alleging that Ripple conducted a $1.3 billion unregistered securities offering.

Ripple (XRP) Volatile Movements With Rallies and Dips

After experiencing consistent increases for two days, XRP’s price surged to $0.5658 on June 13, driven by the release of the Hinman documents. 

This was the second-highest price XRP reached this year, just below the $0.5850 price on March 29. Unfortunately, this positive momentum didn’t last long, as XRP faced opposition that caused its price to drop to a low of $0.5054. 

Although there was a slight recovery, XRP closed on June 13 at $0.5192, representing a 1.12% decline from its initial value earlier in the day. The negative sentiment continued, and XRP experienced a significant drop to $0.4819 the next day. 

As a result, XRP closed on June 14 below the $0.50 price threshold, marking the first time it had done so this month. This decline amounted to a loss of 7.53% in value.

XRP has failed to break the significant point of $0.50 since then. But the asset has been experiencing a positive performance in the past three days.

XRP’s Potential Recovery Amidst Drop: Whale Accumulation and Retesting of 200 EMA

Despite experiencing a significant decline, there are indications of increased whale accumulation and the potential for recovery in XRP. 

Specifically, on June 16, XRP witnessed a substantial drop, with its price plummeting to $0.4558, leading to a retest of the 200 Exponential Moving Average (EMA). 

This suggests that despite the drop, there are signs of increased buying activity by large investors and the possibility of a price rebound. Following the drop, XRP quickly rebounded, initiating a recovery phase observed over the past three days. 

The fact that XRP’s price reached the 200 Exponential Moving Average (EMA) and then started to recover indicates that the moving average served as a significant support level. When a price bounces off or finds support at this level, it suggests strong buying interest and a potential area of demand. 

Moreover, the bounce off the 200 EMA suggests that the upward trend will likely continue as buyers actively enter the market to take control. This positive momentum could drive XRP to recover and reach the $0.50 price level.

According to Santiment data, addresses holding between 1 million and 1 billion XRP have increased since June 9. Santiment added that over 1.1 billion XRP had been gathered by these addresses over the past week.

The asset is experiencing a bullish momentum, showing a significant 24-hour increase of 2.34%. As of the time of writing, the price mark of Ripple is at $0.493, according to data from CoinGecko.